Tax Preparer Agrees to Repay $103,000 for Filing False Returns

Rathana Ung of Lim’s Taxes in Long Beach is charged with filing false tax returns for the years 2006, 2007, 2008 and 2009.

Rathana Ung, 41, a resident of Coto De Caza in Orange County, and former director and officer of Lim’s Income Tax and Lim’s Tax, Inc. in Long Beach, pleaded guilty this morning to aiding in the preparation of a false 2008 federal income tax return filed with the Internal Revenue Service.

According to the plea agreement, Ung, a licensed enrolled agent, filed false Forms 1040 with the IRS containing false deductions and false business losses, knowing that the taxpayers for whom the returns were filed were not entitled to claim such deductions.

According to the plea agreement, between 2006 and 2010, Ung filed federal income tax returns for numerous clients claiming false deductions for mileage, meals and entertainment expenses, and other unreimbursed employee business expenses. Some of the tax returns contained false Schedules C (Profit or Loss from a Business) and at least one return contained a false deduction for tuition and fees.

The false tax returns generated refunds for which the taxpayers were not entitled. Ung admitted that she prepared false federal income tax returns to obtain more clients by obtaining and maintaining a reputation in the community as a return preparer who would secure large refunds for her clients.

As part of the plea agreement, Ung agrees to make full restitution to the United States for the losses caused by her preparation and filing of false federal income tax returns. She agrees that the amount of such losses is at least $103,736.

Rathana Ung faces a maximum sentence of three years imprisonment at sentencing scheduled for October 7, 2013 before United States District Judge Beverly Reid O’Connell.

The investigation and prosecution of Rathana Ung is being conducted by IRS Criminal Investigation in conjunction with the United States Attorney’s Office for the Central District of California in Los Angeles.